Definition
A pattern of swings where each peak is below the last peak and each dip falls below the last dip: the textbook shape of a downtrend.
The story
It's the staircase going down. Each bounce stalls below the one before it, and each drop goes a bit deeper. When a bounce finally climbs above the previous peak, many traders see the downtrend as broken.
Why you'll see it
It's the plain-language definition of a downtrend that a lot of chart commentary relies on.
Connects to
Market structureHigher highs and higher lowsTrend and trendlineTrend reversal
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms